European biopharmaceutical company UCB SA (OTC:UCBJF) (OTC:UCBJY) announced a $680 million strategic divestment deal in China.
The transaction involves the sale, divestment, and license of UCB’s mature business (neurology and allergy) in China to CBC Group, an Asia-based healthcare-dedicated asset management group, and Mubadala, an Abu Dhabi-based investment company.
“In the short term, UCB is exploring the launch of novel medicines in immunology, neurology, and rare diseases in China,” stated Jean-Christophe Tellier, CEO of UCB.
“The demand for central nervous system products in China has been increasing over the past decade, and by leveraging CBC’s unique investor-operator approach, we are excited to channel our expertise, resources, and platform synergies to meet these evolving needs and drive value for our stakeholders,” said Fu Wei, Chief Executive Officer of CBC Group.
The scope of this divestment includes UCB’s neurology portfolio (Keppra, Vimpat, Neupro) and allergy portfolio (Zyrtec, Xyzal) in Mainland China and UCB’s Zhuhai manufacturing site.
This transaction will allow UCB to focus its efforts on innovation and partnerships, ensuring that its strategic goals align with the evolving demands of the Chinese market.
Combined net sales for these medicines in China for 2023 were 131 million euros. The transaction is expected to close in the fourth quarter of 2024.
This agreement does not impact UCB’s financial guidance for 2024. For 2025, a marginal dilution of the adjusted EBITDA margin is anticipated.
The adjusted EBITDA margin for 2025 is expected to remain unchanged at the low end of the range of low to mid-thirties in percent of revenue.
Photo via Shutterstock
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